Withdrawals from Provident Fund by subscribers-Revised Rules. Amendment to General Provident Fund (Central Service) Rules 1960

Withdrawals from Provident Fund by subscribers-Revised Rules

Withdrawals from Provident Fund

No 3/2/2017-P&PW (F)(ii)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003

Dated: the 7th March, 2017

OFFICE MEMORANDUM

Subject: Amendment to the provisions of General Provident Fund (Central Service) Rules 1960- liberalization of provisions for withdrawals from the Fund by the subscribers – regarding.

The General Provident Fund (Central Service) Rules came into force in 1960 and Rule 15 of the said rules provide for withdrawals by the subscribers. Some amendments have been made from time to time to address  the  concerns raised  by the subscribers .However,  the  provisions,  largely  remain  restrictive.  There  is  a  felt  need  to  liberalize provisions, raise limits and simplify the procedure.

2. The provisions in the rules have been reviewed and it has now been decided to permit withdrawals from the fund by the subscriber for the following purposes:

(i) Education-This will include primary, secondary and higher education , covering all streams and institutions,
(ii) Obligatory  Expenses viz. betrothal, marriage, funerals, or other ceremonies  of self or family members and dependants,
(iii) Illness of self, family members or dependants ,
(iv) Purchase of consumer durables

3. It has been decided to permit withdrawal of upto twelve months pay or three-fourth of the amount standing at credit, whichever is less. For illness, the withdrawal may be allowed upto 90% of the amount standing at credit of the subscriber . A subscriber may seek withdrawal after completion of ten years of service.

(v) Housing including building or acquiring a suitable house or a ready built flat for his residence,
(vi) Repayment of outstanding  housing loan,
(vii) Purchase of house site for building a house,
(viii) Constructing a house on a site acquired,
(ix) Reconstructing or making additions on a house already acquired ,
(x) Renovating, additions or alterations of ancestral house.

4. A subscriber may be allowed to withdraw upto ninety percent of the amount standing at credit for the above It is also decided do away with the present instructions which lay down that subsequent to the sale of house for which GPF withdrawal has been availed, the amount withdrawn has to be deposited back. GPF withdrawal for housing purpose will no longer be linked with the limits prescribed under HBA rules. A subscriber  may be permitted to  avail  the  facility  at  any time  during  his service.

(xi) Purchase of motor car/motor cyclel scooter etc. or repayment of loan already taken for the purpose,
(xii) Extensive repairs /overhauling of motor car,
(xiii) Making deposit to book a motor car/motor cycle/seater, moped etc.

5. A subscriber may be permitted to withdraw three- fourth of the amount standing at credit or cost of the vehicle, whichever is less for the above purposes. Withdrawal for the above purpose will be permitted after completion of 10 years of service

6. Presently, withdrawal of upto 90% of balance without assigning reasons is allowed for Government servants who are due for retirement on superannuation within a It is proposed that this may be allowed for upto two years before superannuation.

7. In all cases of withdrawal from the fund by the subscriber, the declared Head of Department is competent to sanction No documentary proof will be required to be furnished by the subscriber. A simple declaration form by the subscriber explaining the reasons for withdrawal would be sufficient.

8. As per GPF(CS) Rule 1960, no time limit has been prescribed for sanction and payment of withdrawal Therefore, it has been decided to prescribe a maximum time limit of fifteen days for sanction and payment of withdrawal from the Fund. In case of emergencies like illness etc., the time limit maybe restricted to seven days.

9. Necessary amendment to the GPF (Central Service) Rules 1960, giving effect to the above provisions will be issued in due course.

10. In so far as persons serving in Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller and Auditor General of India.

11. This issues with approval of Department of Expenditure, vide their ID No.  4(1)/E-V/2017 dated 28.02.2017.

12. Hindi version of this OM will follow

 

(Sujasha Choudhury)
Director

----------- Similar Posts: -----------

Leave a Reply